1. Target Business Financials

Annual Revenue ($)
EBITDA Margin30%
Valuation Multiple2.0X
Annual Growth20%
Assets & Inventory Value ($)
Business Purchase Price ($)$600,000

2. Your Investment & Financing

Loan-To-Value Ratio (LTV)80%
Cash Investment ($)$150,000
Loan Amount ($)$600,000
Interest Rate7.5%
Loan Term7 years

Your ROI Analysis

Cap Rate50.0%
Cash Investment Payback Period~9 months
Monthly Loan Repayments$9,202.97
Monthly Cash Flow Year 1$15,797.03
Monthly Cash Flow Year 2$20,797.03
Monthly Cash Flow Year 3$26,797.03
Future Business Value (3 Years)$1,036,800

How did we get these numbers?

Valuation = (EBITDA x Multiple) + Asset Value.

Cap Rate = EBITDA / Business Purchase Price.

Monthly Cash Flow is the business's monthly profit minus the monthly loan repayments.